Transcript Highlights:

• Additional federal funding became available for the project, and the agency has an available balance
• Yes, there are such things, as new projects that are 100 percent federally funded and require no state
• The agency has received a direct federal appropriation of $2 million to carry out two projects in the
• The agency has received a direct federal appropriation of $2 million to carry out two projects in the
• No additional general fund will be needed to deliver the federally funded projects.

Summary: The Emergency Board approved a series of consent federal grant applications from the Natural Resources and Public Safety subcommittees, along with several budget and position requests. The board approved grant applications for parks, transportation, judicial, emergency management, higher education, school nutrition, and other programs, including retroactive approvals where deadlines had passed. One member objected to the Natural Resources consent grants over concerns about future funding needs, but the motion still passed. The board also approved a one-time increase for Judicial Department court security, including digital privacy protections, circuit court security, and a statewide facilities assessment. A major discussion centered on Southern Oregon University’s financial stability. The Higher Education Coordinating Commission reported on SOU’s structural deficits, declining enrollment, and projected cash shortfall. The subcommittee recommended, and the board approved, allocating $7.5 million from the special appropriation for short-term stability, with a required update at the September 2026 Emergency Board meeting and a future request for the remaining funds. Members debated the broader crisis in higher education, with several saying SOU’s situation reflects systemwide enrollment and funding pressures and that long-term restructuring will be needed. The board also approved an AmeriCorps volunteer generation grant, an apprenticeship expansion grant, and a Department of Education nutrition equipment grant. In public safety, it approved funding for Oregon Military Department readiness facilities, a statewide evacuation planning tool, and a juvenile justice information system modernization report, while requiring a follow-up viability report. The Department of Justice received approval for additional antitrust positions and expenditure limitation, though several members raised concerns about the funding structure and incentives tied to settlement revenues; the motion passed despite objections. In natural resources, the board approved funding for the Water Resources Department’s well abandonment, repair and replacement grants, an assistant water master position in Washington County, groundwater data collection in the Lower Umatilla Basin, a wetlands remote sensing pilot, and parks-related grant applications for operations, maintenance, and capital improvements. Members generally supported the requests but raised concerns about geographic equity, long-term sustainability, and whether some county responsibilities were being shifted to the state. The meeting also included discussion of a Department of Emergency Management evacuation tool as an urgent wildfire preparedness measure, with members emphasizing its potential to save lives.

Transcript Highlights:

• federally approved.
• There's about 21 projects that we had in the last previous obligation, state and federal funding, and
• There's about 21 projects that we had in the last previous obligation, state and federal funding, and
• The project is complex.
• So if it's a federal project, they're going to be required to follow all the requirements that we have

Summary: The committee first took up HB 322, which would create a transportation trust fund and transportation program fund. The sponsor offered and the committee adopted an amendment striking the section that would have imposed a 1% gross receipts tax on electricity sales. After a recap of the bill’s remaining provisions, including a $400 million seed amount and future transfers from motor vehicle excise tax revenue, the committee heard brief support from Associated Contractors of New Mexico and the Asphalt Pavement Association and no opposition. The amended bill then passed on a roll-call vote. The committee then heard HB 270, a public works/apprenticeship bill that would require contributions to approved apprenticeship and training programs or to the Public Works Apprentice and Training Fund for public works construction projects, while eliminating an exemption for certain road, highway, utility, and maintenance work. Supporters, including union carpenters, electrical workers, the building trades council, and apprenticeship advocates, argued the bill would expand training, help address labor shortages, and provide a return on public investment. Opponents from utility contractors, highway contractors, and Associated Contractors of New Mexico said they already operate federally approved in-house training programs, warned the bill would raise project costs, and argued some trades have no accessible approved programs. Members questioned how the bill would interact with existing in-house programs, whether rural contractors and nonunion firms would be affected, and whether the state-approved fund and federal highway training requirements could conflict. A proposed amendment to exempt projects of $50 million or less was introduced but tabled. After extensive debate, the committee voted 6-5 to pass HB 270. The meeting also included discussion of a prior procedural error in which HB 270 had been heard before being properly assigned, which the chair said rendered that earlier action void. At the end of the meeting, the committee received a brief New Mexico Department of Transportation District 3 presentation on district projects, budget, and construction status.

Transcript Highlights:

• up some of the federal funds to do, um, other projects within the state.
• up some of the federal funds to do, um, other projects within the state.
• up some of the federal funds to do, um, other projects within the state.
• fun federal constraint are there other fun federal constraint are there other tap<00:45:17.200><c> projects
• So, they go back into the federal program to spend on additional projects. >> So, the additional projects—I

Committee: House Public Works and Highways

Transcript Highlights:

• projects.
• Just to give a little bit of context, the federal 9% tax credit provides more equity in each project,
• The 4% program, as was mentioned earlier, is reliant on projects receiving federal financing from our
• Many of those projects, as Ms.
• projects.

Summary: The subcommittee opened with remarks on the Senate’s budget plan for affordable housing and homelessness, including a proposed $2 billion housing investment and full funding for HHAP rounds 7 and 8. The first major item was the administration’s housing reorganization and trailer bill package, which would codify the new Housing Development and Finance Committee (HDFC), consolidate multifamily housing finance programs into a one-stop application and award process, and shift some authority over bonds, tax credits, and the Affordable Housing and Sustainable Communities program. Administration officials said the goal was to reduce duplication, speed projects from award to construction, and improve accountability by aligning financing decisions. The LAO generally supported the streamlining concept but recommended changes to the proposed bond set-aside and earlier reallocation of unused bond authority, and suggested preserving flexibility for integrated applications and reporting back on the proposed 70/30 split for housing versus sustainable communities funding. Committee members, especially Senator Cabaldon, raised concerns that the new committee structure could add process and delay, and questioned whether the proposal was effectively repurposing the climate-oriented ASIC program into a housing finance tool without enough direct investment in core housing programs. Administration witnesses responded that the structure was meant to create transparency, public accountability, and simultaneous financing awards, and said the proposal was only a first step in a broader consolidation effort. Members also asked about specific programs such as the Joe Serna Farm Worker Housing Grant Program and the Sustainable Agricultural Lands Conservation Program, and staff said those would remain within the broader streamlined framework or the flexible sustainable communities allocation. The committee then heard from CDLAC and TCAC on federal tax credit changes and state housing finance. Staff explained that H.R. 1 increased the federal 9% LIHTC allocation and, more importantly, lowered the bond-financing threshold for 4% credits from 50% to 25%, allowing California to finance many more projects. They reported emergency regulations were adopted quickly to implement the change, resulting in 195 projects and more than 25,000 units in the 4% program, while the 9% program funded 58 projects and nearly 3,000 units. Members asked about the value of the state low-income housing tax credit program and rehabilitation projects; staff said state credits remain important for filling financing gaps and that a portion of bond and credit resources is now set aside for acquisition and rehabilitation. Finally, the Civil Rights Department reported on the effects of federal civil rights rollbacks and on three limited-term or expiring programs: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal closures and funding cuts have increased demand on the department, which now has more than 12,000 open matters, up from 8,700 a year earlier, and a six-month wait for intake interviews despite overtime triage and early case screening. Members urged continued funding for the programs, arguing they are essential as federal protections weaken; department staff said California vs. Hate connects callers quickly to support services, the conflict resolution unit fills a gap left by the shuttered federal counterpart, and the limited-term investigators have helped reduce wait times even as filings continue to rise.

Transcript Highlights:

• projects.
• Just to give a little bit of context, the federal 9% tax credit provides more equity in each project,
• The 4% program, as was mentioned earlier, is reliant on projects receiving federal financing from our
• projects.
• To ACFC projects.

Transcript Highlights:

• Reserve is now levels as the Federal Reserve is now projected<00:08:37.479><c> to</c><00:08:37.640><
• The projection for federal government employment has changed considerably in recent weeks but is not
• for federal government the projection for federal government employment<00:17:49.120><c> has</c><00:
• In total, the federal government is projected to provide $26 billion for medical assistance in the 2026
• the federal government is projected<00:31:01.120><c> to</c><00:31:01.360><c> provide</c><00:31:01.679

Committee: Senate Finance

Transcript Highlights:

• Those are all going to have impacts on our ability to or access to federal funding for projects.
• I'd like to understand how these federal construction projects now, based on the Big Beautiful, is uh
• So it sounds like to me that the project was, was federalized and based on the program that was funding
• associated with the projects is federal.
• So, um, for the federal fiscal year 25, we have two more projects um that you can see it's S10730.

Transcript Highlights:

• Our federal partners at the FTA support projects near stations. It's often that you see.
• The first major mega project, and not that that work is going to be small, that's probably Mega project
• We did enter into project development phase in September of 2023 and continue to work with the Federal
• In any event, this is an enormously reckless project. The federal grant money goes away.
• That's the approaches project, which is also a bi-state-led project. Next slide.

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The committee met jointly with the Washington-Oregon Legislative Action Committee for an update on the Interstate 5 Bridge Replacement (IBR) program. Members first adopted the proposed committee rules, then received program updates from staff on environmental review, permitting, design, tribal consultation, and public engagement. Staff said the project remains in the supplemental EIS process, with a final supplemental EIS and amended record of decision expected in early 2026, which would allow construction to begin. They also described ongoing work on Coast Guard navigation clearance, Section 106 historic-property coordination, and architectural guidelines for the bridge and five-mile corridor, emphasizing that the visualizations shown were conceptual and that public and partner feedback has already influenced design considerations such as accessibility and shared-use path connections. Members raised concerns about schedule delays, rising costs, and whether the project is being designed to be functional, safe, and economical. Staff acknowledged that the timeline has slipped from earlier expectations and said the delay reflects the complexity of the environmental and federal review process, as well as the need to avoid redoing steps. They said the updated cost estimate is being prepared now that design has advanced to roughly 30 percent, and that it will account for inflation, risk factors, and both fixed-span and movable-span options. Staff estimated a movable span would add more than $400 million and said the first construction work after environmental approval would likely be preliminary freeway and retaining-wall work in late 2026, followed by the bridge procurement. The committee also received funding and tolling updates. Staff reported that major federal grants have been executed, including Mega and Bridge Investment Grant agreements, and that state STIP amendments are advancing to allow access to federal funds. The tolling team described Level 3 traffic-and-revenue work, a bi-state tolling subcommittee process, and possible toll scenarios aimed at supporting either about $1.24 billion or $1.6 billion in toll revenue. Members questioned low-income toll relief timing, truck toll rates, and the effect of tolls on freight users. Staff said low-income discounts are being analyzed for both revenue and operational feasibility, that tribal exemptions and other policy exemptions are under review, and that the commissions expect to move into public outreach on toll rates and policies in 2026, with tolling on the existing bridges currently projected to begin in spring 2027.

Transcript Highlights:

• That's just the reality of how projects evolve and the needs of those particular projects.
• No, the processors apply for the projects. So the processors submit a request for a project.
• that response was federalized.
• I mean, some events will require federal assistance and federal money be available if it's something
• those federal dollars, and those programs have just ended or the construction projects have ended as

Committee: House Appropriations

Transcript Highlights:

• And what do those projections look like? What are those projections like for those companies?
• agencies under federal law.
• The project extent between the two models is the same. The project begins...
• So I'd like to see any kind of a plan or project projection on this, or pro forma, to see how the O&M
• Project is transparent.

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The Joint Oregon-Washington Legislative Action Committee met for a work session and public hearing on the Interstate 5 bridge replacement program. Program staff outlined major milestones, including the recent biological opinion, the Coast Guard’s opening of a public comment period on the Navigation Impact Report, expected decisions in early 2026 on navigational clearance and the final supplemental environmental impact statement, and a possible amended record of decision in 2026. They also discussed the Bridge Investment Program grant amendment deadline, the need for an initial finance plan, and ongoing community outreach and contractor engagement. Greg Johnson announced he was stepping down as program administrator, and Carly Francis introduced herself as interim administrator. A large portion of the meeting focused on design and cost questions. Staff said the program is studying fixed and movable spans, single- and double-deck configurations, and one versus two auxiliary lanes, with final recommendations to be made through the federal environmental process. They said the Coast Guard’s decision is central to what bridge configuration is permittable and to the timing of the updated cost estimate, which has not yet been released. Members pressed for more detail on cost drivers, potential impacts to businesses upriver, and whether the states would need to seek additional funding. Staff said they had reached agreements with four impacted river users, but the underlying evaluation materials are protected and not publicly releasable. The committee also reviewed transit-related questions. Staff explained that light rail remains part of the modified locally preferred alternative and that ridership and operations estimates are being updated using federal modeling methods. They said projected opening-day transit operations and maintenance costs have dropped from an earlier estimate of $21.8 million to about $10.3 million annually because the current model assumes lower frequency, with Oregon and Washington shares split by geography and fare recovery. Members raised concerns about TriMet’s financial stability and the need for a funding plan by fall 2027, ahead of a planned federal transit funding application in fall 2028. During public testimony, several speakers criticized the delay in releasing a new cost estimate and argued the project scope should be reduced if costs continue to rise. Testifiers from City Observatory and the Just Crossing Alliance said the project appears to be avoiding bad news, urged the committee to consider scope reductions, and questioned whether the active transportation and freeway components align with the project’s core purpose. The meeting ended with thanks to Johnson for his service and a transition to public hearing testimony.

Transcript Highlights:

• the project would address, analysis of the preferred alternative, and project budget analysis.
• For state-funded capital construction projects valued over $10 million, and certain capital projects
• It identifies project milestones. Progress reports required from our project sponsors are there.
• This program allows for fairly large projects, so up to $2 million per project.
• a real community project?

Summary: The committee held public hearings on several capital-related bills. HB 2353 would raise the pre-design threshold for state-funded capital projects from $10 million to $15 million and index it to inflation beginning in 2027. The sponsor and a testifier said the change would reduce delays and save money on projects by avoiding costly pre-design work for mid-sized projects; staff noted the bill could reduce future capital budget costs. HB 2420 would increase the Small Works roster contract cap in stages from $350,000 to $650,000 by 2030, with a proposed substitute shifting the first increase from July 2026 to January 2027 to allow time for rulemaking. Testimony from universities, cities, ports, counties, and water/sewer districts supported the bill as a way to reduce administrative burden, speed projects, and help small and diverse contractors. The committee also heard HB 2470, which would change how the School Construction Assistance Program treats school facilities on military bases. Staff explained the bill would exclude on-base instructional space from a district’s available-space calculation and adjust state assistance to account for federal funding, potentially increasing eligibility for affected districts such as Clover Park and Medical Lake. The sponsor and supporters said current rules unfairly reduce state support for districts serving military families; OSPI testified in support but said the bill would need amendment to avoid federal-law issues and was working on a revised approach that would increase the SCAP funding assistance percentage instead of directly referencing federal funds. Clover Park School District and the Veterans Legislative Coalition also supported the measure. In executive session, the committee moved HB 2338, which expands the low-income weatherization program to include community-scaled projects, out of committee with a do-pass recommendation by a vote of 17 ayes and 2 excused. The committee then held a work session with the Recreation and Conservation Office on its competitive grant programs, including Washington Wildlife and Recreation Program accounts, youth athletic facilities, community forests, aquatic lands, boating, off-road vehicle, firearms and archery, and federal grant programs. Members asked about demand, ADA compliance, geographic distribution, and technical assistance; RCO said demand is high in several programs and that it uses scoring criteria, regional allocations, and outreach to improve access statewide.

Transcript Highlights:

• The Franchise Tax Board can rely on federal law, federal audits, federal case law, and regulations.
• and $250,000 per project per year for master developed projects.
• While the project itself was privately financed, most... ...the project itself was privately financed
• However, projects such as Wellhead's projects, energy storage projects, our members are trained to build
• those projects as well.

Committee: House Revenue and Taxation

Summary: The Assembly Committee on Revenue and Taxation heard several bills dealing with taxes, transit funding, clean energy incentives, veterans’ property tax relief, housing-related remediation fees, and federal tax conformity. Early in the hearing, SB 63 was presented as a Bay Area transit funding measure authorizing a local sales tax ballot measure for BART, Caltrain, Muni, and AC Transit, with supporters emphasizing service cuts that could occur without new funding and an opponent raising Proposition 13/218 concerns. SB 56 and SB 296 both focused on disabled veterans’ property tax relief, with supporters arguing that disability compensation should not count as income for eligibility and that the bills would help veterans remain housed; SB 296 was described as a broader exemption for 100% disabled veterans and surviving spouses. SB 86 sought to extend and expand the California Alternative Energy and Advanced Transportation Financing Authority’s sales and use tax incentive program, including fusion energy, and SB 302 would conform state tax law to federal clean energy credit provisions to help projects monetize federal incentives. SB 328 would cap Department of Toxic Substances Control fees for contaminated-soil remediation on housing projects, with supporters saying current fees can make infill housing infeasible. SB 711 would update California’s tax conformity date to January 1, 2025 to align with federal tax law changes and simplify filing. After quorum was established, the committee took formal action on the bills. SB 63 was approved 4-2 and sent to Appropriations; SB 86, SB 302, SB 328, SB 711, and SB 293, SB 359, SB 419, SB 587, SB 603, SB 663, SB 710, and SB 785 were approved with various amendments and sent to Appropriations, while SB 56, SB 284, SB 723 were held in committee and SB 296 and SB 353 were made two-year bills. The committee also adopted amendments on several measures, including reducing SB 86’s aggregate cap, delaying SB 302’s effective date with a sunset, and narrowing SB 710’s exclusion to certain nonresidential solar systems. The hearing concluded with the chair thanking members and staff and adjourning the committee.

Transcript Highlights:

• So we've been working with DOE at the federal level, and they took the leadership of the project to do
• So big up with the new federal component because we do cross federal lands with this project: BLM, Forest
• And they So we've been working with DOE at the federal level, and they took the leadership of the project
• So big up with the new federal component because we do cross federal lands with this project, BLM, Forest
• And from the counties and the both delegations in both states, for this project, we also want some federal

Committee: Joint Joint Committee on Energy Supply, Energy Conservation, and Energy Resilience

Summary: The Joint Committee on Energy Supply, Energy Conservation, and Energy Resilience opened by electing Senator Shewmake as chair and Representative Alex Ybarra as vice chair. Members then turned to a work session on data centers, transmission, and workforce issues, with the committee noting the statutory rotation of leadership and the urgency of these topics for 2026 and beyond. Kate Bruns and Glenn Blackman presented preliminary findings from the governor’s Data Center work group, which met from May through November and received more than 1,000 public comments. They said the group did not reach full consensus, but agreed Washington’s grid has limited excess capacity, data centers are expected to be a major source of future load growth, ratepayer protections and better load forecasting are important, and the state should preserve its energy and climate laws while seeking more clean power and transmission. They also described tribal consultation underway through the Department of Revenue, and noted that a proposed expansion of the data center sales tax exemption tied to new clean electricity narrowly failed and was left for the legislature to consider. The committee then heard from West Tech consultant Keegan Moyer on regional transmission planning. He described a broad Western transmission portfolio developed through interconnection-wide studies, including roughly 70-plus planned projects and additional upgrades totaling about 12,000 line miles and an estimated $56 billion. He said the West faces rapid load growth, reliability stress, and major transmission constraints, and that the portfolio is intended to support reliability, economic efficiency, and public policy goals. Members asked about crossing utility and market “seams,” state ownership or pre-permitting of corridors, and whether the process could speed interconnection delays; he said the main barriers are permitting, rights-of-way, and interconnection queues, not construction itself. Stephanie Scott then summarized the electrical transmission workforce needs study. She said the study focuses on substation technicians, line workers, and line clearance tree trimmers, and found that meeting Washington’s clean energy goals will require far more workers than current training pipelines produce. She emphasized that apprenticeship depends on active projects, that retirements are reducing experienced mentors, and that barriers such as costly CDL training, limited pre-apprenticeship access, and wraparound support needs must be addressed. The committee also heard from Brant Johnson of Grid United on barriers to new transmission, using the North Plains Connector as a case study. He described a long development process centered on early stakeholder engagement, tribal consultation, route changes, and coordinated federal and state permitting, and said the project has largely relied on private capital with a federal GRIP grant covering a portion of costs. Members discussed eminent domain, landowner compensation, financing, and whether similar approaches could help speed other transmission projects.

Transcript Highlights:

• projects.
• So the $50 million is going to go towards projects that the federal government will approve.
• “That would be directed to projects that specifically meet the federal requirements that Caltrans would
• be following to complete projects with federal dollars, which have those specific requirements that
• What projects?

Transcript Highlights:

• projects.
• So the $50 million is going to go towards projects that the federal government will approve.
• That would be directed to projects that specifically meet the federal requirements that Caltrans would
• be following to complete projects with federal dollars, which have those specific requirements that
• What projects?

Summary: The Senate Budget Subcommittee heard several Caltrans, CHP, and DMV budget and trailer bill items. On Caltrans fleet replacement, the department requested a one-time $225 million augmentation to replace aging medium- and heavy-duty vehicles and expand zero-emission vehicle infrastructure. LAO said the request was consistent with state policy, but senators criticized the high cost of electric fleet purchases and Caltrans’ delayed zero-emission fleet report; the chair said the report must be delivered within 30 days before the request could be fully considered. Caltrans also presented trailer bill language to replace an originally intended $50 million federal transfer for the High Road Construction Careers Program with $30 million in state Highway Account funds after federal eligibility problems prevented use of the federal dollars. Members questioned the reduction, the delay in implementation, where the remaining funds would go, and whether the program would keep jobs in California and meet labor standards; Caltrans and the Workforce Development Board said the program had prior success and that the state-funds transfer was intended to preserve the original policy goal. The committee then reviewed CHP’s request for a $60 million augmentation for equipment and operating costs, which CHP said was needed because vacancy savings no longer covered rising fuel, vehicle, and other operating costs. CHP argued that recruitment success had reduced vacancies and that costs had risen sharply since 2006, while LAO recommended rejection, citing that the expenses were ongoing, CHP still had vacancies above pre-pandemic levels, and the Motor Vehicle Account faces structural insolvency by 2028-29. Members discussed whether the account can sustain these costs and whether the Legislature should consider broader funding changes. CHP also sought a permanent $885,000 augmentation for seven analyst positions for the Highway Violence Task Force; CHP said freeway shootings had fallen sharply since 2021 and that analysts were essential to solving cases, while LAO noted the request was smaller than prior years but would create an ongoing commitment. Senators generally supported the task force but asked for clearer metrics and reporting, especially because the data categories had changed over time. Finally, the DMV presented the State-to-State verification system and related modernization work under DXP. DMV said State-to-State is required for Real ID compliance and that California must join the system by February 2027, with live testing planned for the summer. Senators focused heavily on privacy and data security, especially the inclusion of Social Security number digits in the system, the role of the American Association of Motor Vehicle Administrators, and whether Californians understood their information would be shared in a nationwide database. DMV said the system only shares federally required data, uses encryption, and is designed to de-duplicate records across states, but members pressed for more information on governance, audit authority, and whether the Legislature had explicitly approved the data-sharing approach. The chair asked DMV to follow up with the Attorney General and indicated the committee would continue reviewing the issue.

Transcript Highlights:

• federal government.
• for projects in the city.
• estimate of lower federal, while the LFC kept federal flat.
• The agency's estimate of lower federal, while the LFC kept federal flat.
• looking at a current list of projects, looking at the status on those projects.

Committee: House House Appropriations & Finance

Transcript Highlights:

• of this resiliency project.
• of the resiliency project.
• And then those projects that were remaining, we reassigned those projects to high-performing general
• This is a federal program. It is not a state program. It's 100% federal dollars.
• We must follow the federal policy.

Committee: Senate Community Affairs

Summary: The Committee on Community Affairs met with a quorum and heard two bills, a confirmation, and two agency presentations. SB 48 by Senator Gates would require local governments to allow voluntary accessory dwelling units, preserve homestead exemption for the owner-occupied portion, limit parking restrictions, require 30-day minimum leases, extend density bonuses for military-family housing, and allow reusable tenant screening reports. The bill drew strong support from the Florida Association of Mortgage Professionals and several others, and it was reported favorably on a unanimous roll call. SB 34 by Senator Sharief would expand the Historic Cemetery Program, particularly to help historic African-American cemeteries preserve and maintain themselves by allowing sale of excess vacant land only if proceeds are used for long-term upkeep; it also passed unanimously and was reported favorably. The committee also recommended confirmation of Fox Henderson to the Florida Housing Finance Corporation Board of Directors by unanimous vote. In addition, the Department of Commerce presented on the Community Development Block Grant Disaster Recovery program and Rebuild Florida, describing more than $4.3 billion in HUD disaster recovery funds since 2017, housing repair and replacement efforts that have completed more than 5,200 homes, and infrastructure and mitigation projects across the state. Members asked about average project costs, contractor oversight, corrective actions for deficient work, and clawbacks from a prior vendor; Commerce said it had ended the earlier vendor relationship, imposed about $3.6 million in financial consequences, and now uses stronger oversight and competitive procurement for contractors. The Division of Emergency Management then presented on Elevate Florida, a federal mitigation program that allows homeowners to apply directly for elevation, reconstruction, acquisition, or wind-mitigation projects, with a 75/25 federal-homeowner cost share and no state funds used. Director Kevin Guthrie said the program is intended to reduce repetitive flood losses, keep homeowners in their communities, and serve as a national model; he reported more than 12,000 applications, about 1,500 prioritized for review, 500 on a wait list, and 305 submitted to FEMA for final approval. Members asked about assistance for seniors who cannot meet the 25% match, the wait-list process, contractor selection, and the mix of project types, and Guthrie said contractors were selected through competitive procurement and that most projects are elevations, though some may become reconstructions or acquisitions depending on inspection results. The committee adjourned after the presentations.

Transcript Highlights:

• funding projects.
• funding projects.
• As far as the Alston project... ...it very closely there.
• project, and I know you had some questions.
• in a world where maybe there's less federal funding, especially discretionary federal funding, available

Committee: Joint Joint Committee on Transportation

Summary: The Joint Committee on Transportation held an informational hearing with invited testimony from MassDOT leadership, the MBTA, Massport, and the state’s Federal Funds and Infrastructure Office. MassDOT officials outlined work across highways, rail and transit, the Registry of Motor Vehicles, and aeronautics, emphasizing major capital spending, bridge and roadway programs, transit grants, rail expansion, airport safety, and modernization efforts. They highlighted Chapter 90 and municipal grant programs, the Compass Rail and West-East Rail efforts, RMV upgrades such as electronic titles and driver licensing systems, and aeronautics work on airport pavement, drones, and advanced air mobility. Committee members focused on safety, service access, and project implementation. Questions to MassDOT covered automated enforcement and rising roadway fatalities, the Allston multimodal project’s federal funding, Complete Streets access for rural communities, and South Coast Rail staffing and future electrification. The RMV was asked about the Work and Family Mobility Act, Real ID demand, and appointment access, especially in Metro West. Members also raised concerns about South Coast Rail operations, Keolis staffing, and whether the Stoughton route remains part of future plans; MassDOT and MBTA officials said they are working on staffing, service reliability, and long-term expansion, while noting that nothing is off the table for future rail improvements. MBTA General Manager Phil Eng reported progress including workforce growth, elimination of subway speed restrictions, expanded reduced-fare access, bus network redesign, South Coast Rail launch, and commuter rail signal upgrades. He said the agency is pursuing a new commuter rail operating contract designed to support future regional rail, electrification, and higher-frequency service, while maintaining service and workforce stability amid funding uncertainty. Members also asked about fare collection data privacy and the impact of state funding levels; Eng said the MBTA needs the governor’s proposed funding to preserve service and staffing, and that the fare system’s data are encrypted and handled through a secure vendor system. Massport CEO Rich Davey reported record activity at Logan, Worcester, and the cruise and maritime facilities, along with major capital and climate investments such as sustainable aviation fuel planning, shore power at Flynn Cruiseport, renewable diesel, and expanded ground transportation. He said Massport is planning for continued passenger growth and managing congestion through parking, HOV, and curbside changes, while monitoring federal policy, tariffs, and air traffic control staffing issues. Federal Funds Director Quentin Palfrey described the administration’s efforts to secure federal infrastructure dollars, citing about $9 billion in federal awards since the start of the administration, including major transportation grants for the Cape Cod Bridges, Allston, West-East Rail, North Station drawbridge replacement, roadway safety, and clean school buses. He warned that changing federal policies, grant delays, and possible future congressional actions create uncertainty, but said the office is working case-by-case with municipalities and agencies to protect awarded funds and find alternative financing where needed.

Transcript Highlights:

• projects.
• So the $50 million is going to go towards projects that the federal government will approve.
• That would be directed to projects that specifically meet the federal requirements that Caltrans would
• be following to complete projects with federal dollars, which have those specific requirements that
• What projects?

Summary: The subcommittee heard several California transportation and public safety budget proposals. Caltrans requested a one-time $225 million augmentation to continue replacing its aging fleet and build out zero-emission vehicle infrastructure. Caltrans said the funding would replace about 1,100 vehicles, including many heavy-duty units, and acknowledged its overdue report on zero-emission fleet efforts would be delivered by mid-to-late April. The LAO said the request raised no concerns, but one senator strongly criticized the cost and policy emphasis on making the fleet the “greenest” rather than prioritizing road maintenance. The chair pressed Caltrans to submit the overdue report within 30 days, saying it was necessary for oversight before the request could be considered. The committee also discussed a Caltrans proposal tied to SB 150 and the High Road Construction Careers Program. Because federal highway funds could not be used as originally intended for workforce training, Caltrans and the Department of Finance proposed replacing the federal dollars with $30 million in state Highway Account funds. The Workforce Development Board said the program had a track record of connecting participants to apprenticeships and jobs, while one senator questioned why the original $50 million federal set-aside had not been implemented and asked for more detail on where the remaining funds would go. Finance said the state funds were already set aside and expected to begin flowing in May over a two- to three-year period. The California Highway Patrol presented two requests. First, CHP sought $60 million from the Motor Vehicle Account for equipment and operating costs, citing inflation, higher vehicle prices, and the end of its ability to cover costs through vacancy savings as hiring improved. The LAO recommended rejection, arguing the costs were not new, CHP still had a substantial equipment budget, and the Motor Vehicle Account faces insolvency by 2028-29. Second, CHP requested $885,000 ongoing to fund seven crime analyst positions for the Highway Violence Task Force. CHP said the task force had reduced freeway shootings from 477 in 2021 to 179 last year, though some data categories had changed over time. The LAO did not object, but noted the request would create a permanent funding commitment. The DMV presented two modernization items: the State-to-State verification system required for Real ID compliance and the DXP system to replace aging legacy technology. The LAO raised no concerns with either, but noted DXP has had cost overruns and delays and will require continued legislative oversight. Senators focused heavily on privacy and data-sharing concerns in the State-to-State system, especially the use of Social Security number digits and the role of the AAMVA network. DMV said the system is required for Real ID compliance, uses encrypted data, and is intended to prevent duplicate credentials across states. The committee also discussed customer service improvements from DXP, with DMV saying the project should better integrate systems and improve service delivery by the end of the calendar year.

Transcript Highlights:

• final touch-ups remaining to move the project forward. federal funding, but based on the federal funding
• He said they do know the amount of federal funding coming to this project is going down, so the thought
• And so, I'd like to see the project move forward, but I would surely like to see the federal government
• federal law.
• This is a state law federal federal law.